Johnson & Johnson (JNJ) vs Merck & Co., Inc. (MRK)
A side-by-side comparison of Johnson & Johnson and Merck & Co., Inc. across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of July 28, 2026. Differences are shown without an overall score or investment verdict.
JNJ
Johnson & Johnson
$266.73HealthcareDelayed quote: Jul 28, 2026, 4:00 PM EDT
MRK
Merck & Co., Inc.
$131.84HealthcareDelayed quote: Jul 28, 2026, 3:59 PM EDT
Total return — JNJ vs MRK
growth of $100 · dividends reinvested · last 30yJNJ +2166.3%MRK +990.2%JNJ compounded faster
JNJ MRK
JNJ vs MRK: by the numbers
- •JNJ is the larger company ($642.79B vs $325.61B market cap).
- •JNJ trades at the lower trailing earnings multiple (30.82 vs 36.83 P/E), one valuation lens rather than an overall verdict.
- •JNJ converts more revenue to profit (21.48% vs 13.62% net margin).
- •MRK grew revenue faster over the past five years (8.60% vs 2.93% CAGR).
- •MRK pays the higher dividend yield (2.57% vs 1.97%).
Metrics side by side
Valuation
| Metric | JNJ | MRK |
|---|---|---|
| P/E ratio | 30.82 | 36.83 |
| Forward P/E | 22.76 | 47.09 |
| P/S ratio | 6.63 | 4.93 |
| P/B ratio | 7.64 | 7.05 |
| PEG ratio | 0.21 | 1.81 |
| EV / EBITDA | 19.98 | 15.16 |
| FCF yield | 3.48% | 4.37% |
Profitability
| Metric | JNJ | MRK |
|---|---|---|
| Gross margin | 70.45% | 75.91% |
| Operating margin | 26.81% | 36.17% |
| Net margin | 21.48% | 13.62% |
| ROE | 24.76% | 19.48% |
| ROIC | 13.71% | 18.27% |
Dividends
| Metric | JNJ | MRK |
|---|---|---|
| Dividend yield | 1.97% | 2.57% |
| Payout ratio | 47.51% | 46.03% |
Growth (annualized)
| Metric | JNJ | MRK |
|---|---|---|
| Revenue CAGR (5Y) | 2.93% | 8.60% |
| EPS CAGR (5Y) | 11.51% | 21.21% |
| FCF CAGR (5Y) | -0.49% | 15.69% |
| Total return CAGR (5Y) | 12.13% | 14.44% |
Frequently asked
- Which has the lower trailing P/E, JNJ or MRK?
- JNJ has the lower trailing P/E: JNJ trades at 30.82 and MRK at 36.83. P/E is one valuation measure and does not by itself establish which business is cheaper.
- Which has grown faster, JNJ or MRK?
- Over the past five years, MRK grew revenue faster — JNJ at a 2.93% CAGR versus MRK at 8.60%.
- Does JNJ or MRK pay a bigger dividend?
- JNJ yields 1.97% and MRK yields 2.57% based on trailing dividends and the latest price.
- Is JNJ or MRK more profitable?
- JNJ runs the higher net margin — JNJ at 21.48% versus MRK at 13.62%.
- How have JNJ and MRK total returns compared?
- Over the past 10 years, JNJ delivered 10.85% and MRK delivered 12.27% annualized total return. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
Johnson & Johnson P/E ratioMerck & P/E ratioJohnson & Johnson dividend yieldMerck & dividend yieldJohnson & Johnson ROEMerck & ROEJohnson & Johnson operating marginMerck & operating marginJohnson & Johnson revenue growthMerck & revenue growthJohnson & Johnson free cash flowMerck & free cash flow
Johnson & Johnson & Merck & appear in these rankings
Highest Dividend Yield Stocks25+ Year Dividend GrowersHighest ROIC StocksHighest Operating Margin Stocks
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Figures are sourced from reported fundamentals and the latest end-of-day price. This comparison is informational only and is not investment advice. Past performance does not predict future results. See our methodology. Compiled by TGMCharts Research · data verified July 28, 2026.